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One Response to “How does a home equity line of credit work?”
It’s very similar to a Home equity loan. If you have 50 grand of equity, they will loan you 80% of that,(40,000).
A home equity loan gives you all the money at once and an installment loan shows up on your credit for the 40 grand. It is treated similar to Mortgages for credit score purposes (good).
A home equity line of credit loans you the money only as you need it so only the amount that you’ve actually used shows up on your credit report. It is treated similar to Credit Card debt for credit score purposes.
It’s very similar to a Home equity loan. If you have 50 grand of equity, they will loan you 80% of that,(40,000).
A home equity loan gives you all the money at once and an installment loan shows up on your credit for the 40 grand. It is treated similar to Mortgages for credit score purposes (good).
A home equity line of credit loans you the money only as you need it so only the amount that you’ve actually used shows up on your credit report. It is treated similar to Credit Card debt for credit score purposes.